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Strategie
Blue Ocean Strategy
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„Strategy is the creation of a unique and
valuable position, involving a different set of
[combined] activities“
- Michael E. Porter Porter, M. E. (1996). What is Strategy? Harvard Business Review, November-December, p. 3-22
blue ocean strategy
idea
Companies tend to engage in head-to-head competition in search of sustained profitable
growth.
Yet in today’s overcrowded industries competing head-on results in nothing but a bloody
red ocean of rivals fighting over a shrinking profit pool.
Lasting success increasingly comes, not from battling competitors, but from creating blue
oceans of untapped new market spaces ripe for growth.
Blue Ocean Strategy provides a systematic approach to making the competition irrelevant.
Source: www.blueoceanstrategy.com
KIRENZ
STRATEGY & MARKETING CONSULTING
blue ocean strategy
Source: www.blueoceanstrategy.com
KIRENZ
STRATEGY & MARKETING CONSULTING
6 Paths Framework
blue ocean strategy
6 Paths Framework
The Six Paths Framework allows managers to address the search risk many companies struggle
with. It enables them to successfully identify out of the haystack of possibilities that exist,
commercially compelling blue oceans by reconstructing market boundaries.
There are six basic approaches to reconstructing market boundaries. These challenge the six
fundamental assumptions underlying many companies’ strategies that keep companies trapped
competing in red oceans. Instead of looking within the accepted boundaries of competition, the Six
Paths Framework allows managers to look systematically across them to create blue oceans.
The table above outlines these six basic assumptions and the pathway managers can take to break
away from head-to-head competition towards blue ocean creation.
Source: www.blueoceanstrategy.com
KIRENZ
STRATEGY & MARKETING CONSULTING
blue ocean strategy
Source: www.blueoceanstrategy.com
KIRENZ
STRATEGY & MARKETING CONSULTING
TIERS of Customers
blue ocean strategy
TIERS of Customers
Typically, to grow their share of a market, companies strive to retain and expand their existing
customer base. This often leads to finer segmentation and greater tailoring of offerings to better
meet customer preferences.
The more intense the competition is, the greater, on average, is the resulting customization of
offerings. As companies compete to embrace customer preferences through finer segmentation,
they often risk creating too-small target markets.
To maximize the size of their blue oceans, companies need to take a reverse course. Instead of
concentrating on customers, they need to look to noncustomers. And instead of focusing on
customer differences, they need to build on powerful commonalities in what buyers value. This
reorientation allows companies to reach beyond existing demand to unlock a new mass of
customers that did not exist before.
Source: www.blueoceanstrategy.com
KIRENZ
STRATEGY & MARKETING CONSULTING
blue ocean strategy
TIERS of Customers
Although the universe of noncustomers typically offers big blue ocean opportunities, few
companies have keen insight into who noncustomers are and how to unlock them.
To convert this huge latent demand into real demand in the form of thriving new
customers, companies need to deepen their understanding of the universe of
noncustomers.
Source: www.blueoceanstrategy.com
KIRENZ
STRATEGY & MARKETING CONSULTING
blue ocean strategy
Source: www.blueoceanstrategy.com
KIRENZ
STRATEGY & MARKETING CONSULTING
Value Innovation
blue ocean strategy
Value Innovation
Value innovation, the cornerstone of blue ocean strategy, is the simultaneous pursuit of differentiation
and low cost, creating a leap in value for both buyers and the company.
Because value to buyers comes from the offering’s utility minus its price, and because value to the
company is generated from the offering’s price minus its cost, value innovation is achieved only when
the whole system of utility, price, and cost is aligned.
Break the value-cost tradeoff by answering the following questions:
•
•
•
•
What factors can be eliminated that the industry has taken for granted?
What factors can be reduced well below the industry’s standard?
What factors can be raised well above the industry’s standard?
What factors can be created that the industry has never offered?
Source: www.blueoceanstrategy.com
KIRENZ
STRATEGY & MARKETING CONSULTING
blue ocean strategy
Source: www.blueoceanstrategy.com
KIRENZ
STRATEGY & MARKETING CONSULTING
Four Actions Framework
blue ocean strategy
Four Actions Framework
The Four Actions Framework is used to reconstruct buyer value elements in crafting a new
value curve.
To break the trade-off between differentiation and low cost and to create a new value curve,
the framework poses four key questions, shown in the diagram, to challenge an industry’s
strategic logic.
Source: www.blueoceanstrategy.com
KIRENZ
STRATEGY & MARKETING CONSULTING
blue ocean strategy
Source: www.blueoceanstrategy.com
KIRENZ
STRATEGY & MARKETING CONSULTING
ERRC GRID
blue ocean strategy
ERRC GRID
The Eliminate-Reduce-Raise-Create (ERRC) Grid compliments the Four Actions Framework. It pushes
companies not only to ask the questions posed in the Four Actions framework but also to act on all four
to create a new value curve, which is essential to unlocking a new blue ocean. By driving companies to
fill in the grid with the actions of eliminating and reducing as well as raising and creating, the grid gives
companies four immediate benefits:
It pushes them to simultaneously pursue differentiation and low cost to break the value-cost trade off.
It immediately flags companies that are focused only on raising and creating, thereby lifting the cost
structure and often overengineering products and services – a common plight for many companies.
It is easily understood by managers at any level, creating a high degree of engagement in its application.
Because completing the grid is a challenging task, it drives companies to thoroughly scrutinize every
factor the industry.
Source: www.blueoceanstrategy.com
KIRENZ
STRATEGY & MARKETING CONSULTING
blue ocean strategy
Source: www.blueoceanstrategy.com
KIRENZ
STRATEGY & MARKETING CONSULTING
Strategy Canvas
blue ocean strategy
Strategy Canvas
The strategy canvas is the central diagnostic and action framework for building a compelling blue
ocean strategy. The horizontal axis captures the range of factors that the industry competes on and
invests in, while the vertical axis captures the offering level that buyers receive across all of these key
competing factors.
The strategy canvas serves two purposes:
• To capture the current state of play in the known market space, which allows users to clearly see
the factors that the industry competes on and where the competition currently invests and
• To propel users to action by reorienting focus from competitors to alternatives and from
customers to noncustomers of the industry
The value curve is the basic component of the strategy canvas. It is a graphic depiction of a company’s
relative performance across its industry’s factors of competition. A strong value curve has focus,
divergence as well as a compelling tagline.
Source: www.blueoceanstrategy.com
KIRENZ
STRATEGY & MARKETING CONSULTING
blue ocean
strategy
Sequence of BOS
Source: www.blueoceanstrategy.com
KIRENZ
STRATEGY & MARKETING CONSULTING
blue ocean strategy
Sequence of BOS
Companies need to build their blue ocean strategy in sequence.
This framework can help companies ask the key questions at four critical steps:
•
•
•
•
buyer utility,
price,
cost,
and finally adoption.
Source: www.blueoceanstrategy.com
KIRENZ
STRATEGY & MARKETING CONSULTING
blue ocean strategy
Source: www.blueoceanstrategy.com
KIRENZ
STRATEGY & MARKETING CONSULTING
Buyer Utility MAP
blue ocean strategy
Buyer Utility MAP
The Buyer Utility Map helps to get managers thinking from a demand-side perspective. It outlines
all the levers companies can pull to deliver utility to buyers as well as the different experiences
buyers can have of a product or service. This mindset helps managers identify the full range of
utility propositions that a product or service can offer.
The Buyer Experience Cycle (BEC): A buyer’s experience can usually be broken down into a cycle
of distinct stages, running more or less sequentially from purchase to disposal. Each stage
encompasses a wide variety of specific experiences. Purchasing, for example, might include the
experience of browsing Amazon.com as well as the experience of pushing a shopping cart through
Wal-Mart’s aisles.
Utility levers: Cutting across the stages of the buyer’s experience are what we call utility levers –
the ways in which companies unlock utility for their customers. Most of the levers are obvious.
Simplicity, fun and image, and environmental friendliness need little explanation.
Source: www.blueoceanstrategy.com
KIRENZ
STRATEGY & MARKETING CONSULTING
KIRENZ
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STRATEGY & MARKETING CONSULTING
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KIRENZ CONSULTING
Kundengewinnung & Kundenbindung im digitalen Zeitalter
Mehr Insights auf kirenz.de
Kontakt: Kirenz@icloud.com
KIRENZ STRATEGY & MARKETING CONSULTING
Prof. Dr. Jan Kirenz
Wesendonkstr. 44
81925 München
KIRENZ
STRATEGY & MARKETING CONSULTING